BUSINESS SENSE
“Strategic Position” – Week 4
Nancy Larsen, Enterprise Facilitator of SEFP

When writing your business plan assume that your reader knows nothing about the business you are in. Even if you know they are experts, remember that the Lenders or Investors want to see that you know more about the industry and your market than they do.

Define the industry you are in, its size, demand, potential, trends and competitors (nationwide and local). Identify your local market area and the segments of the population that are your potential customers and whether they are individuals, households, businesses, schools, government, hospitals. What are the demographics of each of these market segments that reveal the total potential market?

What is your approach to take customers away from your competition to initially obtain market share? Describe your products mix and the features and benefits they provide over your competition. What do you do that sets your business apart from the competition? List the important economic factors that will affect your product/service; i.e. demographics, rising prices, legal or government factors. Define your long-range market strategy to hold onto this market share.

Is there a market for your product/service at all? Does your company have the strength to get the job done? Let outsiders know why this will work and be able to support what you believe in! If your product/service is of a proprietary nature take steps to protect it; patents, trademarks, copyright, trade secrets, proprietary contracts, etc. Look for outside opinions on the commercial prospects of your product or service.

Remember – “Business is like an automobile. It won’t run by itself, except downhill.” Next week - Marketing Strategy.

Next weeks topic is: “Market Strategy”

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